Analyst Warns Ethereum Could Fall to $2,000 if December Closes Below Key Level

A cryptocurrency analyst recently discussed the potential movements of Ethereum based on a long-term pattern identified in its monthly price chart.

Key Takeaways

Analyst Ali Martinez has identified a long-term Parallel Channel pattern in Ethereum's price chart.
Ethereum's price is currently trading around $2,860 and is down over 15% in the past week.
A key level to watch is $2,930; if the price closes below this in December, further declines could occur.
Support levels below this include $2,000 and potentially $1,090 if the first fails.

Ethereum

Ethereum's Trading Pattern

In a recent post on X, analyst Ali Martinez highlighted a long-term trend that Ethereum has been following for several years. This trend is described as a “Parallel Channel,” a concept from technical analysis (TA) where an asset's price fluctuates between two parallel trendlines.

The upper trendline of a Parallel Channel typically signifies resistance, where price tops can form. Conversely, the lower trendline serves as a support level, helping to keep prices from falling below it.

Parallel Channels can vary based on the angles of the trendlines relative to the axes of the chart. Channels may be Ascending or Descending if they have a slope; they are considered Ascending when the lines tilt upward, and Descending when they angle downward.

For the current analysis, the simplest type of Parallel Channel is relevant: a horizontal channel with no slope, meaning the lines run parallel to the time-axis. Under this scenario, the price of the asset moves sideways, consolidating within the channel.

If the price breaks through either trendline, it could lead to a sustained trend in that direction. An upward breakout may suggest bullish momentum, while a drop below support might indicate bearish trends.

Here is the chart that Martinez shared, illustrating the Parallel Channel in which Ethereum's monthly price has been trading:

Ethereum Parallel Channel

As depicted, Ethereum's recent decline saw its one-month price retrace to the middle of the Parallel Channel at $2,930. Martinez indicated that if Ethereum closes below this threshold in December, a further decline could ensue, with the next potential support level around $2,000—marking 25% of the Parallel Channel. Ethereum found support at this level in the early months of 2025.

If this support fails, the cryptocurrency could see a drop to the lower end of the Parallel Channel, which lies at $1,090. This level was last tested in 2022, where Ethereum successfully held support.

It remains to be seen how Ethereum will perform as December draws to a close and if it will test either of these critical levels.

Current Ethereum Price

As of this writing, Ethereum is trading around $2,860, reflecting a decline of over 15% in the past week.

Ethereum Price Chart
The price trend of Ethereum over the last five days | Source: ETHUSDT on TradingView